earningJ ng Jump to... 2 Richard Garcia Print Caloulator 50 g Learning ase sort

Question

earningJ ng Jump to... 2 Richard Garcia Print Caloulator 50 g Learning ase sort the following statements about utility True False Utility is gained from the consumption of goods but not services. Bob reports that he receives 7 units of utility from aUlility is the enjoyment a cup of coffee. Carol says that she receives 70 units of person gains from unts ofperson gains from gets more utility from a cup of coffee than Bob As a rule, marginal utility increases as people consume more of a good. Models of consumer behavior assume that if a person eams $100 a week, he will choose the combination of goods services, and savings that cost $100 and maximize his utility Previous Check Answer Next Ex prfvacy policy terrns of usecontact us help

Explanation / Answer

Utility is the want satisfying power of a commodity. Increase in consumption decreases marginal utility of a good.

True:

1) Bob reports tha the receives 7 units of utility from a cup of coffee. Carol says that she receives 70 units of utility from a cup of the same kind of coffee. Carol definitely gets more utility from a cup of coffee than Bob does.

2) Models of consumer behavior assumes that if a person earns $ 100 a week, he will choose the combination of goods, services and savings that cost $ 100 and maximises his utility.

3) Utility is the enjoyment a person gains from consumption.

False:

1) Utility is gained from the consumption of goods but not services.

2) As a rule, marginal utility increases as people consume more of a good.

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